U.S. Representatives Introduce Bipartisan Bill to Regulate CBD in Food & Beverages

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This article originally appeared in Presence Marketing’s January 2022 Industry Newsletter

By Steve Hoffman

U.S. Representatives Kathleen Rice (D-NY), Morgan Griffith (R-VA), Angie Craig (D-MN) and Dan Crenshaw (R-TX) on December 2 introduced the CBD Product Safety and Standardization Act in the U.S. House of Representatives. If passed, the bipartisan bill would call for the U.S. Food and Drug Administration (FDA) to create a regulatory and enforcement structure for hemp-derived cannabinoids such as CBD as an ingredient in food and beverage products, and to provide recommendations on maximum daily usage and provide packaging and serving guidelines.

Previous federal legislation has been proposed to regulate CBD as a dietary supplement and functional food ingredient, including H.R. 841, introduced in February 2021 in the U.S. House of Representatives, and S. 1698, introduced in May 2021 in the U.S. Senate, reported Let’s Talk Hemp. “CBD products are exploding in popularity, but the lack of federal regulation surrounding them has put consumers at risk and left businesses looking for clarity,” lead sponsor of the new bill, Rep. Rice, said in a press release. 

“The hemp industry is grateful to Reps. Kathleen Rice, Morgan Griffith, Angie Craig and Dan Crenshaw for their introduction of The CBD Product Safety and Standardization Act. We strongly support requiring the FDA to regulate hemp extracts like CBD as food and beverage ingredients, U.S. Hemp Roundtable General Counsel Jonathan Miller said in a statement. “We look forward to working with the bill sponsors to ensure that this legislation provides the broadest range of protections for hemp extract products for human and animal consumption, and to serve as a strong complement to H.R. 841, introduced by Rep. Kurt Schrader and supported by 35 co-sponsors, which would require FDA to regulate CBD in dietary supplements,” Miller said.

USDA Faces Legal Challenge from Organic Industry Over GMO Labeling Standards

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This article originally appeared in Presence Marketing’s January 2022 Industry Newsletter

By Steve Hoffman

The year was 2014 when the state of Vermont passed a stand-alone GMO labeling law, and for a short time, U.S consumers saw major food companies disclose on the package products that contained GMO ingredients. Then in 2015, led by former Representative Mike Pompeo, Congress passed a national GMO labeling law, the Safe and Accurate Food Labeling Act of 2015, that among other requirements, preempted individual states from mandating their own, more transparent GMO labeling laws. To many critics, the passage of the act watered down transparency in the law that favored corporate interests over the consumer’s right to know. The law, known as the National Bioengineered Food Disclosure Standard, (NBFDS) took effect in July 2016 and tasked the USDA with drafting and implementing the new labeling rules.

Now, as the labeling rules are in effect as of Jan. 1, 2022, advocates for clear labeling of GMO foods say the USDA fell short of its promise of transparent GMO labeling. Moreover, the language the agency is requiring on labels to disclose genetically engineered ingredients is confusing to consumers, they claim. In an important first step in a lawsuit challenging USDA’s rules on GMO labeling (which USDA now refers to as “bioengineered or BE foods”) – filed by organic industry groups including the Center for Food Safety and the National Organic Coalition, natural products retailers Natural Grocers, Good Earth Natural Foods and Puget Consumers Co-op, and others – a California federal judge was asked on Nov. 23, 2021, to declare USDA’s GMO labeling standard invalid. The lawsuit was originally filed on July 27, 2020, the National Law Review reported in December.

“Consumers have fought for decades for their right to know what’s in their food and how it’s produced,” Meredith Stevenson, Center for Food Safety attorney and counsel in the case, was quoted as saying. “But USDA instead used its authority to label GE foods by obscuring this information behind QR codes and unfamiliar terminology and omitting the majority of GE foods. Fortunately, the law is on the consumers’ side.”

“It’s critical to shoppers that they know what ingredients are in their food and how they were produced,” said Heather Isely, EVP of Natural Grocers, a plaintiff in the lawsuit. “Hiding the presence of genetically engineered products from consumers is a blatant attempt to hide agricultural practices that continue to destroy soils, biodiversity, communities, and public health. Education is part of our core mission and we refuse to misinform our customers.” “I believe that USDA’s GMO labeling law forces me, as a grocer, to engage in deceptive labeling,” added Mark Squire, co-owner and manager of Good Earth Natural Foods. “I cannot look my customers in the eye unless I do whatever I can to stop this misleading labeling system that is so obviously designed to protect the agro-chemical and biotech industry at the expense of consumers everywhere.”

All retail food products made with genetically modified ingredients (GMO or GE), or what the USDA refers to as bioengineered  or BE foods, will be required to disclose as of Jan. 1, 2022, if they contain bioengineered ingredients via plain text or a QR code on the label, reported Food Navigator-USA. However, many suppliers are still not up to speed with the USDA labeling standards, Nate Ensrud of FoodChain ID told Food Navigator-USA. Ensrud noted that the 13 foods USDA identified as high risk to be bioengineered “can be translated into thousands of ingredients and products sources from numerous global suppliers. Companies think that they have documentation that gives them clear insight into the BE risk of their ingredients, but a lot of what we’ve reviewed doesn’t meet the standards we would expect to support compliance,” he said.

At Issue over USDA’s GMO Labeling Standards:

- The term “bioengineered,” as opposed to the better recognized terms, GMO and GE. According to Meredith Stevenson, legal counsel with the Center for Food Safety, USDA’s mandate concerning the word “bioengineered” contradicts the letter of the law itself, which, she told The Counter, as Congress passed it, allows for this word to be used interchangeably with GMO and GE. Stevenson also noted that USDA’s terminology rule contradicts the agency’s own prior stance. Until 2016, USDA insisted on using the term GMO, saying the term permeated American society and not using the term GMO would mislead consumers.

- Highly refined products derived from GMOs in which genetically engineered material is not “detectable” using a “common testing method” after processing, are exempt from labeling disclosure. That includes sugar from GMO sugar beets, which, according to FoodPrint, comprises about 70% of the sugar consumed in the U.S., GMO canola oil, and additives derived from GMO corn or soy such as flavorings, colorings, thickening agents and binders.

- Allowing companies to use QR codes as a labeling option for consumers to scan instead of providing plain text GMO ingredient information on the label. According to the Pew Research Center, approximately one-quarter of low-income residents in the U.S. do not own a smart phone. “It’s quite discriminatory that they decided to go with a QR code that excludes a significant portion of the population from the right to know what’s in their food,” Dana Perls, Food and Technology Manager at Friends of the Earth, told The Counter in December. 

- USDA adds to the obfuscation, reported The Counter, by not allowing retailers to use shelf tags or other signage to inform customers whether a product contains GMO ingredients, even if it was made in their own kitchen. However, retailers are permitted to let customers know if a products is non-GMO.

Family for Change: Tom Newmark and Sara Newmark Talk Regenerative Ag, Purpose, Climate, Business, and More on the Next Compass Coffee Talk

Tom Newmark (Left) and Sara Newmark (Right)

Compass Coffee Talk will get 2022 off to a bold start with a powerhouse duo sharing business wisdom and mission-focused inspiration on January 12, 2022, at 11:30 am Eastern time. Natural industry legend Tom Newmark brings a long record as a pioneer and leader in natural, organic, and regenerative business, as well as a deep and active commitment to climate-focused education and advocacy. Sara Newmark, chief operating officer at True Grace, a nutrient-dense supplements company, carries on the family tradition of advocacy, responsible business leadership, and service, while raising two kids on an organic and regenerative farm with her husband.

About Sara Newmark
A strong community and social impact professional, Sara Newmark is the COO at True Grace, a new brand of nutrient-dense supplements formulated to improve the health of body and planet for generations to come. An experienced executive with a demonstrated history of working in the health and wellness industry, Sara is an advocate for the power of business to make lasting, systemic change. She brings diverse experience and leadership in sustainability to the True Grace team where she works to improve the health of communities, farmers, people, and planet by committing to doing business regeneratively.

Sara is board co-chair for Green America and sits on the boards for the Coalition for Supplement Sustainability and The Retreat Farm. She lives in Vermont on a 10-acre organic and regenerative farm with her husband and children. The Newmark family also owns Finca Luna Nueva, an eco-lodge and teaching center for regenerative agriculture in Costa Rica.

About Tom Newmark
Tom Newmark is a member of the Leadership Council of the Center for Regenerative Agriculture and Resilient Systems at California State University, Chico and co-owner of Finca Luna Nueva, an eco-lodge and regenerative farming operation in Costa Rica. Tom is co-founder and chair of The Carbon Underground, co-founder of Regeneration International, past chairman of the Greenpeace Fund USA and the American Botanical Council, and founder of Sacred Seeds, a plant conservation project administered by United Plant Savers. As CEO of New Chapter, Inc. he helped to align that company with the goals of the NonGMO and organic movements.

About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.

Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.

VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE

As Supply Chain Problems Persist, Grocery CEO Predicts Food Prices Will Surge 10% in Next 60 Days; Meanwhile, Conventional Food Prices Are Catching Up to Organic

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This article originally appeared in Presence Marketing’s November 2021 Industry Newsletter

By Steven Hoffman

As the backlog of shipping containers at U.S. ports continues, Americans could see shortages of products across the country that will persist into the holidays, analysts are cautioning. Adding to the backup at the ports are driver and labor shortages across all channels of distribution. As a result, shoppers are again facing empty shelves, with pet food, diapers, frozen dinners, spices, chicken and other items listed as being in short supply in the nation’s grocery stores.

In addition to product shortages, food prices could increase 10% in the next two months, predicted John Catsimatidis, president and owner of the supermarket chains Gristedes and D’Agostino Foods.

The billionaire grocer told Fox Business that leading food companies will begin to prioritize products and raise prices. “I see food prices going up tremendously,” he told Maria Bartiromo on Mornings with Maria. “[CEOs] want to be ahead of the curve and the way they’re doing it is they’re dropping all promotions. They are dropping their low-moving items.” 

Projecting a 10% price increase in the coming weeks, Catsimatidis said the trend won’t be ending “anytime soon,” as companies make more profits. “Why give away something when you don’t have to give it away and you make more margin?” he asked rhetorically. “So, I think that now these companies are going to have record profits in the third quarter,” he told Bartiromo.

According to the New York Times, Thanksgiving 2021 “could be the most expensive meal in the history of the holiday…Nearly every component of the traditional American Thanksgiving dinner, from the disposable aluminum turkey roasting pan to the coffee and pie, will cost more this year, according to agricultural economists, farmers and grocery executives,” writes food reporter Kim Severson. “Major food companies like Nestlé and Procter & Gamble have already warned consumers to brace for more price increases,” she reported.

Organic Food Prices Holding the Line More than Conventional…for Now
Meanwhile, researchers at Magnify Money, a division of Lending Tree, reported that conventional food prices are rising at a “much faster rate than organic costs.” According to its research, since 2019, prices for select conventional meats, dairy items, fruits and vegetables have increased by an average of 13.9% – 12 percentage points higher than the reported 1.6% growth in costs for comparable organic items. 

Despite rising conventional food prices, organic foods on average remain more expensive, the Magnify Money researchers pointed out. However, they said, “For those organic-preferring shoppers, the good news is the costs of organic produce, dairy and meats are rising slower than conventional foods.”

However, while organic prices may not be rising as fast as conventional products, the $56 billion organic food industry also is grappling with a shortage of shipping containers and a tight labor market. One organic commodity being affected by the backup at U.S. ports is organic soybeans, much of which is imported into the U.S. in shipping containers, reported Reuters. Costly organic soybeans and higher priced organic products are fueling food inflation “at a time consumers are eager to eat better and focus on health during the COVID-19 pandemic,” Reuters reported. 

Bell & Evans – a 127 year old chicken producer based in Pennsylvania – feeds 500,000 to 600,000 organically raised chickens each week, and must compete for soybeans with other buyers that formerly relied on imports, owner Scott Sechler said. The company raised all chicken prices in July and will likely need to raise organic prices again, he told Reuters. "We're in the most challenging time since the organic world started when it comes to feeding animals and selling an organic animal protein. It's a madhouse now. There's not enough in America to replace all the imported organic grain," Sechler said.

U.S. sales of organic food jumped by 12.8% in 2020 to $56.5 billion, compared with a 4.6% increase in 2019, according to the Organic Trade Association. Organic accounted for 5.8% of food sales in 2020 as the pandemic motivated consumers to eat more meals at home and focus on products perceived to be healthful, OTA said.

Retailers, Consumers and Manufacturers Are Beginning to Hoard Products…Again
While food and consumer product shortages are not as acute as they were in the early days of the COVID-19 pandemic, industry analysts are reporting that shoppers are beginning to hoard products, again. That, combined with ongoing supply chain problems, and retailers and food producers alike are planning for shortages to last into the near future. 

In an interview with Spectrum News’ Bay News9 in Clearwater, FL, natural foods retailer Nature’s Food Patch General Manager Sean Balsley said some products have been hard to find, so when items in demand for the holidays are available, he buys extra. “You got to take it when you can get it,” he said, noting that some popular items for Thanksgiving have been difficult to order.

Adnan Durrani, CEO and founder of Saffron Road, producer of a popular line of natural frozen and shelf-stable foods, told Bloomberg that the company is holding onto extra inventory, keeping four months of supply in stock instead of one or two months of inventory normally held in past years. “People are hoarding,” Durrani told Bloomberg. “What I think you’ll see over the next six months, all prices will go higher.”

Food Prices Increased 4.5% in September Alone, Compared to 2020
Prices for food consumed in the home increased 4.5% in the month of September 2021 alone, compared with prices in the same month in 2020, as input costs continue to rise and more companies pass these costs on to consumers, reported The Food Institute. The question, the Institute asked, is how far can major brands push shoppers on price before they choose cheaper alternatives, search for lower cost brands, or reduce the number of items they purchase. 

According to data from the Consumer Price Index, Fox11 News in Los Angeles reported that food prices increased 4.6% in the year since September 2020. Meat prices rose 12.6%, seafood prices increased 10.7% and categories including fruit, vegetables, cereals, bakery items and non-alcoholic beverages all charted significant prices increases in the past year.

Labor shortages in the supply chain are greatly responsible for price hikes, claimed Nate Rose, Senior Director of Communications for the California Grocers Association, in an interview with Fox11 News. Rose noted that labor shortages lead to reduced supply and increased prices. “People are seeing some more significant upticks in their food costs, especially around meat, year over year…It’s a tough one because demand is strong and right now producers are struggling to meet the demand because of short labor,” he said. “There’s been a lot of coverage of the situation at the ports but it’s also the shortage of truck drivers and people at the distribution centers. It’s tough to see these prices climb continually and I know people are feeling that in their pocket books,” Rose said.

In an interview with ABC Eyewitness News, U.S. Transportation Secretary Pete Buttigieg acknowledged the shortage of truck drivers, exacerbated by the fact that many drivers are older and few young people want to enter the field. He said the Biden administration is taking steps to streamline the process by which prospective drivers can obtain commercial vehicle licenses. 

"The more red tape we can cut out of the process of getting those (commercial driver licenses), the more we can get drivers on the road, and make it possible for them to add to our supply capacity," Buttigieg told ABC. "But I should also be blunt: truck driving needs to be a more well-compensated and more respected profession. Look at the turnover margins in trucking. In large companies it can be 90% turnover per year,” he said.

Inflation Approaching a “Tipping Point at the Grocery Store”
Heading into the holidays, product shortages and purchase limits from major food and consumer product manufacturers "will be a challenge in the grocery industry" in the final months of the year, Steve Howard, VP of Merchandising for Bristol Farms, a leading California-based specialty grocery chain, told CNN. Suppliers are warning the retail chain of "potential shortages" of food products, glass jars and packaging containers, he said.

CNN reported that approximately 18% of beverages, 15% of frozen foods, 16% of snacks, 15% of candy and 18% of bakery items were out of stock at stores during the week ending Oct. 3, 2021, according to data from market research firm IRI, which tracks in-stock levels at leading U.S. grocery chains, big box stores, pharmacies and wholesale clubs. Before the pandemic, IRI reported that 7% to 10% of products were typically out of stock on shelves, according to CNN.

In response to a tighter supply as the country heads into Thanksgiving, Howard told CNN that Bristol Farms is working to bring in inventory "earlier than any other holiday ever," he said.

Noting that inflation may be “approaching a tipping point at the grocery store,” the Wall Street Journal reported that, as a rule of thumb, price increases above 5% are difficult to implement without resulting in changing consumer buying patterns.

Jamie Court, president of Consumer Watchdog, shared people’s concerns about across-the-board price surges. In a Fox11 News interview, she said, “The price of everything we need is up. The gas, the food, and the reality is we don’t know if it’s going to be short term or long term.”

# # #

Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and  Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.

Executive Sweet: Lily's Sweets Founder Cynthia Tice and Former CEO Jane Miller on the Next Compass Coffee Talk

Executive Sweet: Lily's Sweets Founder Cynthia Tice and Former CEO Jane Miller on the Next Compass Coffee Talk

Cynthia Tice (Left), Founder, and Jane Miller (Right), Former CEO, Lily's Sweets

Join natural and organic leaders Cynthia Tice, Lily’s Sweets founder, and Jane Miller, former CEO, will join Compass Coffee TalkTM for a wide-ranging conversation about their collective experience leading and shaping influential companies. Fresh from the recent acquisition of Boulder, Colorado-based Lily's for a reported $425 million by The Hershey Company, Tice and Miller will share perspectives on their impressive track records of success, the state of the industry, their vision for 2022 and next steps.

About Cynthia Tice
After 40 years in the natural products industry, Cynthia Tice is focused on supporting women in business, finding and introducing the highest quality delicious products for healthier living, supporting young entrepreneurs, and sustainability. Her career in the industry began when, fresh out of college, she opened a natural food store in Philadelphia, and she remains passionate about natural foods and their benefits to people and the planet. In 2012, Tice founded Lily’s, a line of delicious, no-sugar-added line of treats that has disrupted the confection and baking categories. Following the initial launch of four bars, Tice added Lily’s No Sugar Added Baking Chips in 2014, and they became the number one item in natural-channel baking. She later partnered with private equity firm VMG to capitalize on Lily’s growth.

About Jane Miller
Jane Miller has more than 35 years of executive experience in the food industry with both startups and Fortune 500 companies. Most recently the CEO of Lily’s, Miller’s previous CEO positions include Rudi’s Bakery, ProYo High Protein Ice Cream, and HannahMax Cookie Chips. Her career began at PepsiCo, where she became President of Frito-Lay's Central division. Miller co-founded Haevn, a company dedicated to creating jobs for the next generation of leaders, and founded career advice website Jane Knows. She is the author of Sleep Your Way to the Top and Other Myths about Business Success (FG Press, 2014). Miller serves on the boards of the University of Colorado Leeds Business School, Watson Institute and Eldorado Springs Artesian Water. She earned her MBA from Southern Methodist University and a degree in Russian Studies from Knox College in Galesburg, Illinois.

About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.

Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.

VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE

The Growth of the Independents – Join Pat Sheridan, INFRA, on Compass Coffee Talk, October 13, 11:30am EDT

The Growth of the Independents: INFRA CEO Pat Sheridan on the Next Compass Coffee Talk

Pat Sheridan, President & CEO of Independent Natural Food Retailers Association (INFRA), to Share Key Insights Into the Role of Retailers in a Changing Market on the Next Compass Coffee Talk, Wednesday, October 13

Wednesday, October 13, 11:30 am – Noon EDT
Zoom, Admission is Free

Natural products retailers continue to see growth despite an unpredictable economic climate and a supply chain in flux, with independent retailers and small chains leading the pack with 6.5% growth in 2020, according to New Hope Network's 2021 Market Overview. On Wednesday, October 13, natural and organic retailing leader Pat Sheridan will join Compass Coffee TalkTM for a lively deep-dive conversation into this current and future retail landscape for naturals. Sheridan will offer unique insights into the opportunities and challenges for retailers and for organic products as we move into a yet-to-be-defined new normal.

Independent Natural Food Retailer Association (INFRA) is a purchasing and business services cooperative of independently owned natural food grocers. INFRA currently represents retailers operating over 400 stores in 45 states with combined annual sales of over $2 billion. With a mission of strengthening its members through collaboration to forge a sustainable future, INFRA focused on key transitions throughout 2020 under Sheridan's leadership. In addition, as Secretary of the Organic Trade Association's Retailer Council, Sheridan participates in the trade association's forum focusing on organic-specific retail issues.

About Pat Sheridan
Pat Sheridan is the President and CEO of Independent Natural Food Retailers Association (INFRA), a purchasing and business services cooperative of independently owned natural food grocers. INFRA currently represents 300 members and 17 associate retailers operating over 400 stores in 45 states with combined annual sales of over $2 billion. Pat joined INFRA in 2018 as its COO & CFO and led its transformation to better serve members by leveraging technology solutions to deliver promotional and consulting opportunities. Pat also serves as Secretary of the Organic Trade Association’s Retailer Council. Prior to joining INFRA, Pat held executive positions in diverse industries such as healthcare, organic milling, and product development.

About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.

Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.

VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE

Amazon’s to Open Whole Foods Market Stores Featuring Cashierless Technology

Photo: Wikimedia Commons

This article originally appeared in Presence Marketing’s October 2021 Industry Newsletter

By Steve Hoffman

Whole Foods Market announced on Sept. 8, 2021 that it will open two stores featuring Amazon’s “Just Walk Out” cashierless technology as an option for customers. The stores, expected to open in 2022, will be located in Washington, D.C.’s Glover Park neighborhood and in Sherman Oaks, CA.

According to Whole Foods Market, by using Just Walk Out technology, customers can enter, shop for the items they want, and simply exit the store. Those shopping using Just Walk Out will also have the option to use Amazon One, a fast, convenient, contactless way for people to enter, identify, and pay. If customers prefer, they can also opt to shop using self-checkout lanes or check out at the customer service booth with Whole Foods Market Team Members, the company said.

In a news announcement posted on Amazon’s website, Dilip Kumar, Amazon's VP of Physical Retail and Technology, said the company has engineered its Just Walk Out system, which relies on computer vision, sensor fusion and deep learning, to Whole Foods’ services and assortment. “Customers at these stores will be able to shop stations with self-service fresh-squeezed orange juice and mochi ice cream, while still shopping with the Just Walk Out experience and without adjusting any shopping habits,” he wrote.

“By collaborating with Amazon to introduce Just Walk Out Shopping at these two Whole Foods Market stores, our customers will be able to shop for fresh, thoughtfully sourced products that all meet our unparalleled quality standards, receive exceptional service from our Team Members throughout their shopping trip, and save time by skipping the checkout line,” said John Mackey, Co-founder and CEO of Whole Foods Market.

Though the new cashierless system offers the prospect of labor savings, Kumar noted that the stores using the Just Walk Out system “will employ a comparable number of Team Members as existing Whole Foods Market stores of similar sizes. With Just Walk Out-enabled Whole Foods Market stores, how Team Members in the store spend their time is simply shifting, allowing them to spend even more time interacting with customers and delivering a great shopping experience,” he said.

Organic Packaged Foods Contain Fewer Ingredients Linked to Negative Health Effects

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This article originally appeared in Presence Marketing’s October 2021 Industry Newsletter

By Steve Hoffman

Processed, packaged foods labeled as organic have a more healthful profile than their conventional counterparts, says a new analysis of 80,000 food products conducted by the Environmental Working Group (EWG) and published in the journal Nutrients.

The study focused on packaged foods, which EWG said accounts for more than 60% of the calories consumed in the U.S. The study analyzed nutrition and ingredient information for 8,240 organic and 72,205 conventional foods sold in the U.S. in 2019 and 2020. It is the most comprehensive study to date of the differences between non-organic, or conventional, packaged foods and those labeled as Certified Organic, said EWG. 

According to the EWG study, organic packaged foods have fewer ultra-processed ingredients and additives that may promote overeating. EWG reported that the overall nutritional profile of organic foods is better, too, with less added sugar, saturated fat and sodium. Organic packaged foods contain more potassium, a heart-healthy nutrient found in fruits, vegetables and other unprocessed or minimally processed foods, EWG reported.

Nearly three-quarters of the U.S. packaged food and beverage supply in 2018 was ultra-processed, claimed EWG. This category of food makes up a significant source of calories for people over the age of two, and even higher for kids ages two to 19, EWG noted.

Nestlé, World’s Largest Food Company, to Invest $1.3 Billion in Regenerative Agriculture

Photo: Pexels

This article originally appeared in Presence Marketing’s October 2021 Industry Newsletter

By Steve Hoffman

With agriculture accounting for nearly two-thirds of Nestlé’s total greenhouse gas emissions – with dairy and livestock accounting for half of that – the world’s largest food company announced on Sept. 16, 2021, that it is investing $1.3 billion over the next five years to help its farmers and suppliers transition to regenerative agriculture practices.

“With our long-standing partnerships with farming communities globally, we want to increase our support for farming practices that are good for the environment and good for people,” said Mark Schneider, CEO of the Swiss-based food company in a statement. “In the spirit of enabling a just transition it is vital that we support farmers around the world that take on the risks and costs associated with the move towards regenerative agriculture.”

Nestlé’s Chairman, Paul Bulcke, added, "We know that regenerative agriculture plays a critical role in improving soil health, restoring water cycles and increasing biodiversity for the long term. These outcomes form the foundation of sustainable food production and, crucially, also contribute to achieving our ambitious climate targets." 

According to Food Business News, Nestlé said it will focus primarily on three initiatives. First, Nestlé said it will use its network of R&D personnel and agronomists to develop more environmentally friendly crops and production practices. Second, the company said it will offer training and help producers exchange information and best practices that may be adapted locally, and that it will support farmers by co-investing with them, facilitating lending or helping obtain loans for equipment. Third, Nestlé said it is committed to paying premium prices for products produced using regenerative agriculture practices. 

“This means rewarding farmers not only for the quantity and quality of ingredients, but also for the benefits they provide to the environment through soil protection, water management and carbon sequestration,” the company said.

Nestlé’s announcement was made in the lead up to the UN Food Systems Summit in New York, as part of Nestle's contribution to help achieve the Sustainable Development Goals (SDGs) by 2030, the company said. It also follows the recent report from the United Nations' Intergovernmental Panel on Climate Change that shows the climate crisis is intensifying, it added.

Sugar Free Is Top Sales Trend in Chocolate

Photo: Pexels

This article originally appeared in Presence Marketing’s October 2021 Industry Newsletter

By Steve Hoffman

“People are really thinking about self-care,” Joanna Lepore, Global Foresight Lead at Mars Wrigley, told the Food Institute. In that pursuit, consumers are seeking moments of indulgence from candy and chocolate, but they are increasingly opting for healthier alternatives. According to IRI data analyzed by the Food Institute, in the 52-week period ending August 8, 2021, chocolate candy dollar sales in the U.S. were up 5.8%, reaching nearly $12.8 billion. However, sales of sugar-free chocolate fared especially well over that 12-month span, increasing 27.4% to roughly $225.64 million. Lepore told the Food Institute that Mars Wrigley is aiming to create snacks to help consumers interested in portion control and consuming a “responsible level of calories and sugar.” She added, “We’re thinking about chocolate as to what role it plays in activating brand values, or giving back to sort of bigger planetary causes, but also thinking about it as being primarily this emotional, social connector.” 

In related news, Hershey’s – one of America’s biggest names in chocolate – is responding to the plant-based trend by launching “Oat Made” vegan chocolate bars in select retail markets. “We're working with partners to keep a limited number of stores supplied with a limited quantity of inventory… We'll use the results of our in-market testing to determine whether we take the products to a national launch in the future," said Dan Mohnshine, Hershey’s team lead of strategic growth platforms, in a statement. “After finding that the ingredient formulas of existing products could be improved upon, our masterful R&D team at Hershey developed formulas using oats that we believe deliver better on consumers' expectations than what is in the marketplace today,” he said. Hershey’s launched organic Reese’s Peanut Butter Cups earlier this year, and vegan, plant-based Reese’s could be on the horizon, Food & Wine reported.

Iconic natural products company Dr. Bronner’s, however, is already there when it comes to standing behind values, giving back to planetary causes – and innovating plant-based, vegan products. Known worldwide for its natural and organic soaps and for its support of natural health and environmental causes, the company has set its sights on changing the cocoa industry for the better by launching Magic All-One Chocolate, its new line of vegan, fair trade, regenerative organic chocolates. Produced in direct partnership with small-scale cacao farmers, Dr. Bronner’s is using a model it established in 2009 to create its certified organic and fair trade palm oil project, reported Honeysuckle Magazine. “Born from the company’s industry-leading socially and environmentally responsible supply chain and developed with the expertise of world-class Swiss chocolatiers and industry experts—this is a chocolate experience like no other—from the brand that is best known for making soap like no other. Dr. Bronner’s Magic All-One Chocolate is the ultimate expression of ethical business, activist compassion, and deep love for the planet,” the company said in a statement.